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Decision Performance (decision + performance)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	75%

Selected Abstracts

A Note on the Interdependence between Hypothesis Generation and Information Search in Conducting Analytical Procedures,

CONTEMPORARY ACCOUNTING RESEARCH, Issue 2 2003
Stephen K. Asare
Abstract This study examines the linkage among the initial hypothesis set, the information search, and decision performance in performing analytical procedures. We manipulated the quality of the initial hypothesis set and the quality of the information search to investigate the extent to which deficiencies (or benefits) in either process can be remedied (or negated) by the other phase. The hypothesis set manipulation entailed inheriting a correct hypothesis set, inheriting an incorrect hypothesis set, or generating a hypothesis set. The information search was manipulated by providing a balanced evidence set to auditors (i.e., evidence on a range of likely causes including the actual cause - analogous to a standard audit program) or asking them to conduct their own search. One hundred and two auditors participated in the study. The results show that auditors who inherit a correct hypothesis set and receive balanced evidence performed better than those who inherit a correct hypothesis set and did their own search, as well as those who inherited an incorrect hypothesis set and were provided a balanced evidence set. The former performance difference arose because auditors who conducted their own search were found to do repeated testing of non-errors and truncated their search. This suggests that having a correct hypothesis set does not ensure that a balanced testing strategy is employed, which, in turn, diminishes part of the presumed benefits of a correct hypothesis set. The latter performance difference was attributable to auditors' failure to generate new hypotheses when they received evidence about a hypothesis that was not in the current hypothesis set. This demonstrates that balanced evidence does not fully compensate for having an initial incorrect hypothesis set. These findings suggest the need for firm training and/or decision aids to facilitate both a balanced information search and an iterative hypothesis generation process. [source]

Competition and Cost Accounting: Adapting to Changing Markets,

CONTEMPORARY ACCOUNTING RESEARCH, Issue 2 2002
Ranjani Krishnan
Abstract The relation of competition and cost accounting has been the subject of conflicting prescriptions, theories, and empirical evidence. Practitioner literature and textbooks argue that higher competition generally requires more accurate product costing. Theoretical economic analysis, in contrast, predicts that the optimal level of product-costing accuracy is sometimes higher at lower levels of competition. Results of survey research are inconsistent, suggesting a need for further identification of conditions under which higher competition leads to more accurate product costing. This study shows experimentally that individuals' choices of the level of product-costing accuracy depend not only on the current level of competition but also on the previous level of competition , that is, on an interaction between market structure (monopoly, duopoly, and four-firm competition) and market history (increasing versus decreasing competition). In the experiment, subjects decide on the quantity of data to collect at a pre-set price per datum to support more accurate product-cost estimates. Subjects collect the most cost data (i.e., choose the most accurate product costing) in monopoly, collect the least in duopoly, and an intermediate amount in the four-firm market, consistent with the pattern of optimal cost-data collection in Hansen's 1998 model. The process of convergence to the optimum differs significantly across market types and market histories, however. Subjects who begin in four-firm competition adapt more successfully to change than those who begin in monopoly. The lowest levels of decision performance occur when ex-monopolists face their first competitor: they overreact to this first encounter with competition and overspend on cost data. [source]

An experimental analysis of decision channeling by restrictive information display

JOURNAL OF BEHAVIORAL DECISION MAKING, Issue 5 2002
Manouchehr TabatabaeiArticle first published online: 15 OCT 200
Abstract This study focuses on the effect of restrictive information display on decision performance. Specifically the study examines whether two-channeled and one non-channeled computerized information display systems result in significant differences in decision accuracy. The two-channeled information display systems are designed to encourage two general information processing patterns commonly observed in the experimental literature examining multi-alternative, multi-attribute choice decisions: information processing by alternative and information processing by attribute. An information display program was developed which used restrictive information display to operationalize the channeled versus non-channeled manipulation. Channeling was implemented either by displaying information only by alternative or by displaying information only by attribute. The task was an operations scheduling problem that subjects completed under three levels of time pressure. The results indicate statistically significant effects on decision accuracy for both the type of information display and time pressure manipulations. The highest decision accuracy was observed when information was displayed by alternative and when subjects were under highest levels of time pressure. Copyright © 2002 John Wiley & Sons, Ltd. [source]

Identification of occupational therapy clinical expertise: Decision-making characteristics

AUSTRALIAN OCCUPATIONAL THERAPY JOURNAL, Issue 3 2009
Mehdi Rassafiani
Background:,Experts are usually determined on the basis of length of experience, reputation, peer acknowledgement, and certification. While these characteristics are important they may, however, not be sufficient for this purpose. Another method for determining clinical expertise is to look at how individuals make decisions in their area of expertise. This study aims to identify clinician expertise on the basis of participants' decision performance and examines this in relation to their length of experience and type of decision-making. Methods:,The Cochran,Weiss,Shanteau (CWS) is a statistical method that can be used to examine individuals' expertise on the basis of how they discriminate between hypothetical cases and consistency in their decision-making. Participants comprised 18 occupational therapists, each with more than 5 years of experience working with children with cerebral palsy. They were required to make treatment judgements for 110 cases (20 of which were repeated) of children with cerebral palsy. The CWS was calculated for each participant. Results and conclusions:,Two groups of participants were identified on the basis of their CWS index , one with both high consistency in decision-making and the ability to discriminate between cases, the other with low consistency and poor discrimination. These two groups did not differ significantly on the basis of length of experience or work setting but did differ on the basis of intervention chosen and their type of decision-making. The CWS method seems to offer promise as a means of determining clinical expertise on the basis of clinical decision-making. Its application to the investigation of clinical reasoning and education is discussed. [source]